Target is cutting thousands of jobs

Target is cutting thousands of jobs within the next two years as part of a $2 billion cost savings plan, the company announced Tuesday.

"The restructuring will be concentrated at Target's headquarters locations and focus on driving leaner, more efficient capabilities, removing the complexity and allowing the organization to move with greater speed and agility," the company said in a statement.

Target employs more than 350,000 workers globally.

Target CEO Brian Cornell told investors Tuesday that the company "lost its balance" after the recession, according to the Minneapolis Star Tribune.

He said the company needs to reinvest in four main categories of merchandise: Style, baby, kids and wellness. Those categories accounted for more than a quarter of the company's sales last year. Target will also be investing more in its grocery offerings, according to the company.

"While we're in the early days and there's no doubt that transformation can be challenging, we're taking the steps necessary to unleash the potential of this incredible brand," Cornell said in a release. "I'm encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target's innovative spirit and deliver sustained growth."

Target reported lower-than-expected guidance for 2015 of $4.45 to $4.65 earnings per share on Tuesday. Analysts had expected $4.50 earnings per share.

Target is likely cutting jobs in part to recoup losses from its Canada operation, which the company recently abandoned.

The expansion into Canada cost Target about $4.4 billion and racked up more than $2 billion in losses.

Target had promised investors that the Canadian business, which was launched less than two years ago, would be profitable by the end of 2013.

The comapny hired a new CEO and replaced the president of its Canadian operation to try to execute a turnaround. But its efforts failed.